Top 10 Most Scammed Industries of 2023

Though scams have been there since time immemorial, fraudsters are still finding ingenious ways of stealing. Throughout the year, all the industries of economies have been attacked by scammers in one way or the other. This made us think, what are the most scammed industries most targeted industries by scammers? What can consumers do to avoid losing their hard-earned money to scammers?

Being able to recognize a scam is a must-have skill when navigating the pitfalls of scams. Join us as we take a look at the most scammed industries in 2023 and some of the major scam news of the year. 

Tech Support

As the world becomes more and more reliant on tech, the need for tech support has never been more important. Scammers often impersonate technical support representatives of popular brands and trick individuals into providing remote access to their computers. 

The scammers, either through calls or emails, will dupe you into thinking something is wrong with your devices or subscriptions. They ignite the fear of losing your devices or create a sense of urgency to make you negate the need for due diligence. 

In the end, stealing personal information, or selling unnecessary services is their end goal. Avoid this by only communicating through official channels. If someone is pushing you to give sensitive information through the phone, they are likely fishy. 

Online Shopping/Retail Industry

 

Source: unsplash.com

The online shopping/retail industry has revolutionized the way we shop, offering convenience and access to a wide range of products. However, it also presents opportunities for scammers to exploit unsuspecting consumers. Fake websites, counterfeit products, and fraudulent sellers are common tactics employed by online shopping scammers in this industry. 

They may set up phony online stores, offering attractive deals or selling counterfeit goods, only to disappear once payments are made. Phishing emails and credit card fraud are also prevalent, targeting sensitive information during online transactions. To protect oneself while shopping online, it is crucial to verify the authenticity and reputation of online retailers, read customer reviews, use secure payment methods, and be cautious of suspicious offers or websites.

Crypto Currency

The cryptocurrency industry, while offering immense potential for innovation and financial growth, also attracts its fair share of scams. Scammers often exploit the decentralized and pseudonymous nature of cryptocurrencies to carry out fraudulent activities. 

They may create fake initial coin offerings (ICOs) to entice investors into contributing funds for non-existent projects or pump-and-dump schemes where they manipulate the price of a cryptocurrency to sell it at an inflated value. Additionally, phishing attacks and fake exchanges can trick individuals into revealing their private keys or sending funds to fraudulent accounts. 

It is crucial for cryptocurrency enthusiasts to exercise caution, conduct thorough research, and only engage with reputable exchanges and projects. Once the money is lost in the crypto world, it is quite hard to recover.

The Banking and Financial Services Industry

This is probably the most targeted industry when it comes to scams with reports suggesting that over two-thirds lost over $500K to fraud in 2022. The report, which was published by Alloy, further suggests that regional banks lost between $1-10M to fraudsters.

 

source: unsplash.com 

Scammers target the banking, investment, and insurance sectors to exploit individuals' financial information, commit identity theft, or carry out fraudulent transactions.

In this industry, scams come in all manner of forms, sizes, and 'fees-ibility,' proving that even the smallest deception can leave your wallet feeling empty. As the industry moves into digital banking, there is a need for more caution and a touch of 'cyber-sass'. This is vital to outwit those scammers who think they can swindle their way into our accounts faster than we can say 'overdraft protection.

Exercise utmost caution and refrain from sharing your banking information, insurance details, social security number, credit card numbers, or any other personal information during phone calls or via email.

It's crucial to remember that legitimate businesses and government officials will never ask you to send over your personal and sensitive information. Those individuals seeking to deceive and exploit unsuspecting individuals are scammers! 

Travel and Vacation Industry

Fraudulent travel agents or websites offer enticing vacation packages, timeshares, or free trips, luring individuals into paying upfront fees but failing to deliver the promised services.

Impersonating popular brands is also popular with scammers changing a few details, especially in the name or the URL. It takes a keen eye to point out this otherwise, you might end up booking flights on a non-existent airline. 

Ensure you do your due diligence before making any payments including reading reviews online and counter-checking the domain and URLs. Additionally, equip yourself with the tips and tricks necessary to avoid the pitfalls of online travel scams.

Professional Services Industry

For people looking for jobs, whether you are starting out or you are in between jobs, a job search can be terrifying. It becomes even more difficult with scammers laying in wait with fake job postings, non-payment scams, money-mule scams, phishing, and spoofing.

But here's an additional warning: remain cautious of anyone promising to shower you with money upfront for equipment or other expenses. Money mules often employ this cunning strategy, sending you substantial amounts only to request most of it back, leaving you with a mere fraction.

Stay sharp, trust your gut, know the online job survival kit, and that together we'll ward off those sinister scammers from your career path.

Telecommunications Industry

The telecommunications industry is not immune to the clutches of scammers, and their presence can wreak havoc on unsuspecting individuals. Phone scams and text scams are commonly employed tactics used by these deceitful characters to impersonate well-known brands and manipulate innocent victims. 

Through phone scams, scammers may call unsuspecting individuals, pretending to be representatives of reputable telecom companies. They might trick people into revealing personal information, such as banking details or social security numbers, with promises of special deals or urgent issues that require immediate action. 

Similarly, text scams use fraudulent messages, resembling legitimate brands, to lure recipients into sharing sensitive information or clicking malicious links

The consequences of falling victim to these scams can range from financial loss to identity theft. It is crucial to remain vigilant and exercise caution when receiving unsolicited calls or text messages, verifying the authenticity of the sender or caller before sharing any personal or financial information.

Real Estate Industry

 

 

Source: unsplash.com 

The real estate industry is not immune to the tactics of scammers, and one common method they employ is the creation of duplicated websites. These fraudulent websites mimic legitimate real estate platforms, complete with property listings and enticing offers. 

However, their intentions are far from genuine. Scammers use these duplicated websites to deceive unsuspecting individuals, enticing them to make payments or deposits for properties that do not exist. They exploit the trust and excitement of potential buyers or renters, leading to financial loss and disappointment. 

To avoid falling victim to such scams, it is crucial to exercise caution when engaging in online real estate transactions. Verify the legitimacy of websites and listings, and work with reputable real estate agents or platforms with established credibility.

Online Dating

Online dating can be a fertile ground for scammers, and one particularly alarming tactic is the pig butchering scam. In this scheme, fraudsters create fake profiles on dating platforms and build romantic connections with unsuspecting individuals, or what they call, “fattening the pig.” 

Once trust is established, they fabricate a story about needing funds for travel or emergency, or even investment. In the ill-famous Tinder Swindler Netflix documentary, Ayleen Charlotte, a victim, lost her life saving and even went into debt because of a scammer. The scammers play on the emotions of their victims, enticing them to send money or make financial transactions under the guise of supporting their supposed business.

Charity and Fundraising

The charity and fundraising industry, which is driven by goodwill and compassion, unfortunately, attracts scammers who seek to exploit any humanitarian crisis for personal gain. Scammers have been known to take advantage of devastating events like the Turkey-Syria earthquakes or the Russian-Ukrainian war, preying on individuals who are eager to contribute and make a positive impact. 

These deceitful individuals may set up fake charities or misrepresent existing ones, using emotional appeals to trick kind-hearted people into donating money that never reaches those in need. It is crucial for donors to exercise caution, research the legitimacy of charitable organizations, and ensure their contributions go to reputable and accountable entities, thus ensuring that their goodwill truly makes a difference.

Other notable mentions

• Gaming and eSports: Scammers may target gamers through phishing attacks, fake in-game purchases, and fraudulent gaming competitions.
• Social Media and Influencer Marketing: Scams can occur on social media platforms, with fake influencers promoting products or services to deceive followers.
• Mobile Apps: Fraudulent mobile apps may appear on app stores, containing malware, collecting personal data, or engaging in unauthorized transactions.
• Education: Scammers may create fake educational institutions or exploit existing ones by offering bogus certifications or degrees. They prey on individuals seeking to enhance their knowledge or career prospects

 

Image source: unsplash.com